In cash management, the difference between the bank balance for a firm's account and the cash balance that the firm shows on its own books is called
Q: The primary functions of the commercial bank include: a. Training employees b. Developing business…
A: The banks borrow in the form of deposits. This capacity is significant because banks mostly rely…
Q: Factoring of accounts receivable typically is the highest cost method of short-term financing.; True…
A: Yes its true Accounts receivable (AR) financing is a type of financing arrangement in which a…
Q: one alternative: True False
A: AASB 16 Leases (AASB 16) eliminates the difference between leases for leaseholders and leases and…
Q: Traditional approach to financial management is how the funds can be utilised efectively. Select…
A: Traditional approach of financial management is used to maximize the value of the origination by…
Q: discusses two discounted cash flow techniques that are used when making capital budgeting decisions.…
A: Cash flow is the amount of cash and its equivalents that transfer in and out of the business.
Q: Discuss what needs to be completed, besides the calculation and interpretation of ratios, to…
A: Proportion or ratio investigation. The estimation and translation of a monetary proportion. Vertical…
Q: If an individual moves money from a demand deposit account to a savings account
A: Trade can be explained to the activity of selling and purchasing goods, services, assets, financial…
Q: The definition 'Management accounting is concerned with accounting information that is useful to…
A: Accounting is defined as the process of recording the financial transactions in the books of the…
Q: The technique used by investors in the financial market to reduce the risk of investment is known…
A: Investment refers to the process of purchasing an asset or item hoping that it will generate income…
Q: The federal funds rate is the interest rate that banks charge each other.
A: Banks are required to maintain reserves requirements on a regular basis in order to meet the…
Q: ________ is the decentralized public ledgering system used to record cryptocurrency transactions.
A: Different types of wallets are used now a days to store cryptocurrencies which works on a technology…
Q: The FDIC traditionally protects depositors up to $250,000 per account. True or False True False
A: Correct Answer is True.
Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…
A: Given data Principal = $10,000,000 Rate of interest = 10% Duration = 1 day we know Interest =…
Q: In fact, the expense of holding stocks can be difficult to find. Why is that? Why? How do we solve…
A: Inventory holding is the inventory held for the future by a corporation at a given time.
Q: Which of the following is the basis for fixing the price of securities in the financial market? O a.…
A: Find the answers below: The correct answer is b) Demand and Supply in the market
Q: What is the reason why most startup firms are not qualify for a factoring scheme to earn cash
A: Factoring helps a company to earn instant cash or money depending on potential profits owed in an…
Q: What is the amount that a bank can lend out if the required reserve ratio is 0.15? 15% of its…
A: Every bank has to hold some percentage of its total deposits, and the balance separated from holding…
Q: An objective of cash management is to
A: Cash management is the process of collecting and processing free cash flow. Good financial…
Q: If 2500 dollars invested in a bank account for 7 years, compounded quarterly, amounts to 3539.98…
A: A=3539.98 P=2500 n=7 YEARS R=?
Q: Explain how cash flow hedge accounting allows gain and losses to be recorded in a variety of places…
A: A cash flow hedge is a hedge of the exposure to variability in the cash flows of a specific asset or…
Q: 1. The set of guidelines and procedures that constitute acceptable accounting practice at a given…
A: Disclaimer- Since you have asked multiple questions we will solve the first question for you. If you…
Q: Liquidity in the airline business means that a company has lots of cash-on-hand to weather a…
A: Liquidity may be your crisis investment account or the money lying with you that you can access in…
Q: When an asset can be easily and rapidly converted into cash without substantial loss of value, the…
A: A type of asset that can be easily converted into cash and also at the same time there is no loss of…
Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…
A: The time line for the cash flows is: The simple interest per year is:$5,000 × .08 = $400So, after 10…
Q: Some of the cash flow elements are estimated in constant dollars, and othersare estimated in actual…
A: The answer is True.
Q: Which one of the following functions that goldsmiths performed was most important in the development…
A: Goldsmith banking services initially began in the form of wealth storage such as gold and various…
Q: Today, banks do much more than accept deposits or make loans. They provide a variety of financial…
A: Discuss why banks are special in every society. a) Banking is the one most ancient and crucial…
Q: "Islamic finance and finance and banking growth rapidly in Muslim countries and around the world.…
A: Financial Accounting is described as the special branch in accounting that includes the processes of…
Q: Long-term debt typically describes debt that will mature in two years or more. Select one: O a. True…
A: Operation management in an organization aims at providing the highest efficiency possible. It…
Q: In zero-based budgeting, every account starts at $0, and every dollar added to the budget is…
A: What is zero-based budgeting? Zero-based budgeting ensures that every single item that is going to…
Q: Which of the following methods of capital budgeting tries to equate the present value of cash…
A: IRR or internal rate of return is one of the various methods of capital budgeting. Under this…
Q: A mutual fund that invest in a mix of equity and fixed income securities that provide current cash…
A: A mutual fund that invest in a mix of equity and fixed income securities that provide current cash…
Q: John Johnson, one of your classmates, is preepairing to launch an e-commerce company to sell home…
A: To open an E-commerce company it is essential o have proper funding. Without funds, nothing can be…
Q: One very important responsibility of the finance department in both large and small businesses…
A: Finance management is crucial for the success of all companies. It might not be as observable as…
Q: Which of the following refers to the rate that bond investors expect to get for investing in a bond?
A: A bond is a instrument which enables a firm to gather a large amount of funds from public by issuing…
Q: All cash flow elements are estimated in constant dollars. True or false?
A: True.
Q: 50-The type of deposit account preferred by business organizations is: Recurring deposits Current…
A: Below is the solution
Q: a.Use the appropriate formula to find the value of the annuity. b.Find the interest. Periodic…
A: The value of annuity is $209,209.90
Q: It is a sort of primitive calculator which was introduced in China about 3,000 years ago.
A: It is ABACUS, which comes from china about 3000 years ago. The Abacus is not really an automatic…
Q: Which of the following are costs associated with storing and holding inventories? Cost of capital…
A: Storing and holding inventories: There are many situations in the company to…
Q: Which software application is most suitable for creating a budget
A: Firstly let us discuss what is Budget: A budget is a forecast of revenue and expenditures for a…
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- An objective of cash management is to A. maximize the cash balance to avoid the risk of illiquidity. O B. minimize the cash balance to maximize the return from idle cash. O C. invest cash for a return while retaining sufficient liquidity to satisfy future needs.50 Ratios can be grouped into certain categories, each of which reflects a particular aspect of the financial performance or position of an entity. Suggest the ratios which measure the extent to which assets can be quickly turned into cash. a. Earnings ratios b. Liquidity ratios c. Profitability ratios d. Interest coverage ratios Clear my choiceWhich capital budgeting technique(s) measure all expected future cash inflows and outflows as if they occurred at a single point in time? a. net present value and internal rate of return b. net present value and payback. c. internal rate of return and payback d. payback
- Discuss Controlling. Discuss the importance of two basic types of financial statements.Which of the following methods of capital budgeting tries to equate the present value of cash inflows to present value of cash outflows? O a. Payback period O b. Internal rate of return O c. Net present value O d. Accounting Rate of returnDiscuss the pros and cons of a MNC having a centralized cash manager handle all cash management including investment and borrowing for all affiliates of the MNC versus each affiliate having a local manager who performs the cash management activities of the affiliate
- Which of the following can be categorized as Short term sources of finance? i Equity Shares ii. Trade Credit iii Debenture iv Money Market Instruments O 3. Both Equity Shares and Debentures O B. Both Money Market Instruments and Trade Credit Only Money Market Instruments O d. Only Equity SharesYou work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales…. When choosing between long and short term borrowing, which of the following is not usually a relevant consideration for a company? Any costs associated with refinancing, such as arrangement fees and penalties. Likely interest rate movements. Matching the term of the loan with the nature of the assets being financed. The principal agent problem.
- The table below, shows the balance sheet of the Bruins Bank. Liabilities/Equity Assets Reserves $40 Demand Deposits Loans 300 Shareholders' equity $450 50 Securities 100 Fixed assets 60 Total 500 Total 500 By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below. a. If the target reserve ratio is 4.0% the Bruins Bank is (Click to select) by $ b. If the target reserve ratio is 8.0% the Bruins Bank is (Click to select) by $ c. If the target reserve ratio is 12.0% the Bruins Bank is (Click to select) by $ d. If the target reserve ratio is 14.0% the Bruins Bank is (Click to select) by $Use the following information to prepare the Juy cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31. Question 1 What is net income after taxes? Question 2 What is the amount of total assets? Question 3 What is the amount of retained earnings?Which of the following statements describes the payment amounts over the life of an ARM? A) Payments will remain constant for the life of the loan. B) Payments may go up or down in relation to the index rate. C) Payments may go up or down in relation to the margin rate. D) Payments may go up or down in relation to the equity in the property.